Walmart reportedly mulling acquisition of pharmacy startup PillPack

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Dive Brief:

Walmart for months has been considering an acquisition of online pharmacy start-up PillPack, CNBC reported, citing two sources familiar with the discussions. Both Walmart and PillPack declined to comment on the reports.

The less than $1 billion reported acquisition price would be far less than the rumored purchase of health insurance company Humana. Amazon has also considered buying PillPack, according to the report.

Meanwhile, Walmart on Tuesday also launched Walmart2World, a new money transfer service available in all 4,700 U.S. Walmart stores starting this month that allows customers to send money from Walmart in the U.S. to any MoneyGram location in 200 countries.

Dive Insight:

PillPack would help expand Walmart's already extensive brick-and-mortar pharmacy operations and boost e-commerce through online prescription orders. The retail giant has been working hard to expand its digital storefront, mostly through acquisitions starting with the 2016 takeover of Jet.com.

The retail giant already provides pharmacy services, health clinics,durable medical equipment, immunizations and wellness days, where customers can have their blood pressure taken. A move a few years ago to offer $4 generic drugs was pioneering, according to Spencer Millerberg, CEO at marketplace analytics firm One Click Retail.

PillPack has operations nationwide (except Hawaii) and, through its in-house PharmacyOS software platform,is designed for people managing multiple medications. Each month, customers receive a personalized roll of pre-sorted medications with clear labels and instructions, according to its website. The company says it's raised $118 million from investors including Accel Partners, Atlas Venture, CRV, Founder Collective, Menlo Ventures, Sherpa Ventures and Techstars.

Separately, Walmart's expansion of the existing nearly two-decade old partnership with Moneygram through its new Walmart2World service is also part of the retail giant's effort to support people without ready access to traditional banking accounts. The companies have also renewed their long-term agreement to offer all MoneyGram products and services at Walmart for two more years.

Walmart2World will deliver funds in 10 minutes or less, much faster than many international wire services that can take up to three days, according to Walmart. The fees are the same – $4 to send up to $50, $8 to send $51 to $1,000, and $16 to send $1,001 to $2,500 – regardless of where the sender or receiver are located.

In addition to now sending money overseas, customers can use MoneyGram at their local Walmart to transfer money to friends and family within the U.S. and to send payments to thousands of companies through MoneyGram's Bill Pay Service, according to a company press release. MoneyGram also issues money orders and processes official checks in select markets, the company said.